China’s CITIC Group Corporation Limited (hereinafter: CITIC Group) intended to transfer 100% of the shares it holds in China CITIC Limited (hereinafter referred to as: CITIC Limited) to the CITIC Pacific Limited (hereinafter: CITIC Pacific), and as a consideration, CITIC Pacific should issue shares and pay cash to CITIC Group. The cash would be raised by CITIC Pacific through placing shares to market investors.

CEA was entrusted to conduct assessment for the above mentioned economic behavior to provide asset valuation professional services. With December 31, 2013 as the base date, it evaluated the market value of CITIC Limited (The evaluation result is the transaction pricing of this equity transaction). In May, 2014 the appraisal was approved by the Ministry of Finance.

CITIC Pacific announced on August 25, 2014 that it had completed the acquisition of 100% shares held by its parent company, which, beginning on September 1, 2014, are traded in Hong Kong Stock Exchange. So far, CITIC Limited, China’s largest transnational financial and Industrial conglomerate, has completed the overall listing in Hong Kong Stock Exchange.

When the CEA project team undertook this project, it had to accurately sort out the CITIC’s complex ownership structure, business structure & development, and types and spread of the underlying assets, and by fully taking references to the valuation practices and ideas of international valuation agencies and paying close attention to similar market performance of listed companies in the United States, Britain, Japan, South Korea and other countries, it innovatively conducted reasonable valuations with the income approach and market approach.

This valuation approach is not only recognized by the experts from the Ministry of Finance, but can also be used to engage in dialogue with foreign financial advisors on the same platform. Moreover, it is a successful exploration of ways for successful evaluation, and a useful innovation practice in innovating appraisal theories.